The planner examines the condition and determines the selectivity of this clause to be 1%. By comparing this estimate and the actual number of rows, we see that the estimate is very accurate (in fact exact, as the table is very small). Changing the WHERE condition to use the b column, an identical plan is generated. But observe what happens if we apply the same condition on both columns, combining them with AND:

The planner estimates the selectivity for each condition individually, arriving at the same 1% estimates as above. Then it assumes that the conditions are independent, and so it multiplies their selectivities, producing a final selectivity estimate of just 0.01%. This is a significant underestimate, as the actual number of rows matching the conditions (100) is two orders of magnitude higher.

This problem can be fixed by creating a statistics object that directs ANALYZE to calculate functional-dependency multivariate statistics on the two columns:

68.2.2. Multivariate N-Distinct Counts

A similar problem occurs with estimation of the cardinality of sets of multiple columns, such as the number of groups that would be generated by a GROUP BY clause. When GROUP BY lists a single column, the n-distinct estimate (which is visible as the estimated number of rows returned by the HashAggregate node) is very accurate: